The global steel rebar market size is expected to reach USD 348.6 billion by 2025, accelerating at a CAGR of 7.2% over the forecast period, according to a new report by Grand View Research, Inc. Increasing efforts by governments of various countries to improve infrastructure are projected to provide ample growth opportunities to market vendors.
In infrastructure sector, steel is required for transport networks including rail tracks, tunnels, and buildings such as train stations, fueling stations, airports, and ports. Reinforcing bars account for around 60% of steel usage in these applications. Rebars are also used in highway bridges to improve the strength of the structure. Some of the recent examples include Champlain Bridge, Montreal; Hong Kong-Zhuhai Macau Bridge, China; and Riverwalk, Brisbane, Australia.
Government initiatives and huge infrastructure projects in emerging and developed economies are projected to assist the market growth. In 2018, the Indian government permitted 100% FDI in different construction projects including the development of roads, bridges, townships, commercial/residential premises, resorts, hotels, hospitals, educational institutes, cities, and regional-level infrastructure. As per the Japan Iron and Steel Federation, the demand for steel in the country is anticipated to reach 3 million tons for construction related to Olympics 2020. Rising industrial activities in the construction sector ahead of the 2020 Olympics are projected to boost the demand for steel products in Japan.
The growing demand has forced local manufacturers to increase steel reinforcement bar prices at a regional level. Increasing use of fiber-reinforced polymer (FRP) rebars is projected to create a critical impact on the industry. Infrastructure segment accounted for 26.0% of the market share, in terms of volume, in 2018. In order to increase the life span of structures, various organizations, research institutes, and private industries are working on solutions to reduce corrosion cost. This has increased the demand for FRP rebars.
These bars can reduce the maintenance and life cycle costs and improve the life of structures. The product has observed slow but a positive demand in countries such as the U.S. and Canada. Market vendors are concentrating on new client acquisitions through various government infrastructure projects. For instance, as per the Steel Authority of India (SAIL), it supplied around 35,400 metric tons of steel for the construction of Bogibeel bridge in Assam, India, in 2018. The bridge is 4.94 km long and SAIL supplied around 50% of the raw materials for the construction. The supplied material included structural parts, plates, and TMT rebars.
Further key findings from the report suggest:
• In terms of revenue, residential construction segment is anticipated to reach USD 146.1 billion by 2025 owing to government funding and incentives for housing sector globally
• In terms of volume, commercial segment is projected to grow at a CAGR of 3.0% over the forecast period owing to an increase in the number of high-rise commercial buildings
• Asia Pacific accounted for the highest volume share of 71.2% in 2018 with the expansion of construction sector in India and China
• In terms of revenue, the Middle East & Africa is projected to grow at a CAGR of 4.5% from 2019 to 2025 on account of increasing focus on non-oil & gas sectors such as construction and automotive
• ArcelorMittal; Tata Steel; Steel Authority of India (SAIL); Shagang Group; Nucor Corporation; and POSCO are some of the key players in the steel rebar market.